Ten class-action lawsuits filed Tuesday accuse motor insurance companies of not reducing premiums sufficiently for Nevada policyholders as traffic declined during the pandemic.
“With fewer people driving fewer kilometers, there are fewer car accidents and therefore fewer demands for car insurance,” the charges read. “The COVID-19 pandemic has thus led to a dramatic reduction in residents’ insurance claims by Nevada residents.”
In the early part of Governor Steve Sisolak’s stay-at-home order last year, traffic volumes across the country in some areas dropped to as much as 70 percent compared to the same period a year earlier.
However, insurance companies did not provide a fair and appropriate insurance premium, according to the complaints heard by Las Vegas firm Eglet Adams and attorney Matthew Sharp of Reno.
“There’s very little risk, or much less, than before COVID,” attorney Robert Eglet told the Las Vegas Review Journal on Tuesday. “They are therefore making record profits on the backs of Nevada consumers, many of whom have been hurt, who have lost their jobs, who have to stay at home or are unable to work because their children are in school.”
The lawsuits filed in the Clark County District include the name State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate. The charges allege breach of contract, bad faith and a violation of the Nevada Fraudulent Commercial Practices Act.
A State Farm spokesman issued a response to the complaint in which he named the company.
“The institution of a case does not confirm the allegations within the complaint,” the statement read. “We have recently taken note of the submission, and it is premature to comment.”
A Liberty Mutual spokesman said the company was not commenting on the case.
Phone calls and emails to the other companies were not returned on Tuesday.
Eglet could not put a dollar figure on the lawsuits, but said millions of people could be part of the class. Every Nevada with a car insurance policy from one of the ten companies can be a member of the class, he added.
Lawyers allege complaints that the reduction in management, accidents and claims “will almost certainly continue in the foreseeable future, and as long as the COVID-19 crisis continues.”
The lawsuits seek to reimburse premium payments retroactively, while future rates may also be adjusted, Eglet said, as more and more people reduce vehicle travel.
“It’s just like most problems in America,” he said. “They do not do the right thing until they are forced to. They are usually forced to do so by regulations or lawsuits. ”
While some insurers have reduced rates by as much as 25 percent, the charges claim it was “insufficient” to match the reduction in ride time, distance and claims.
“They did it for PR purposes to make themselves look good,” Eglet said. “The rebate was an unfortunate minimum amount, and did not cover nearly that amount.”
Eglet represented thousands of victims of the Route 91 Harvest Festival in the lawsuit against MGM Resorts International, owner of the festival venue and Mandalay Bay, where the gunman was. A judge approved a $ 800 million settlement for the victims on September 30, a day before the third anniversary of the mass shooting.
Contact David Ferrara at [email protected] or 702-380-1039. Follow @randompoker on Twitter.